Russia's Sechin sees progress in TNK-BP talks

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MOSCOW, June 20 | Fri Jun 20, 2008 1:14pm BST

MOSCOW, June 20 (Reuters) - Russian Deputy Prime Minister Igor Sechin said on Friday there were signs of progress in talks between BP Plc (BP.L) and the Russian shareholders in the troubled TNK-BP joint venture, Interfax news agency reported.

"It seems that some movement towards resolution has started. At least the sides have started talking to each other," Interfax quoted Sechin as telling reporters during a visit to the central Russian town of Ivanovo.

BP and a quartet of Russian billionaires, which each own half of TNK-BP TNBPI.RTS, have clashed publicly in the last few weeks over the structure and future strategies of the lucrative venture, Russia's third-largest oil producer.

The Russian shareholders said this week talks had ground to a halt and they would file law suits against BP, arguing the British company was trying to seize control of the venture.

BP has denied this and accused the Russian shareholders of behaving like corporate raiders. It said last week it was disappointed the Kremlin had not intervened to resolve the dispute.

Sechin, an influential ally of Russian Prime Minister Vladimir Putin, said it was in the interests of both sides to find a solution as quickly as possible.

"They should solve it more actively, otherwise they will face losses," Interfax quoted Sechin, whose brief includes overseeing the energy sector, as saying.

Many analysts say the ultimate goal of the government, which has put a lot of pressure on TNK-BP, including a search of its offices and the arrest of an employee on espionage charges, is to let a state-controlled firm buy into TNK-BP. (Reporting by Tanya Mosolova)

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